Obama Urges Congress to Revive ‘Cash for Clunkers’ Proposal

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As he rolled out one last reprieve for the nation’s troubled automakers, President Obama also restarted a legislative push that ran out of gas during last month’s stimulus talks: a $10,000 rebate offer to car owners who traded in their old models for more fuel-efficient wheels.

The “cash for clunkers” plan was originally proposed by Sens. Dick Durbin (D-IL) and Tom Harkin (D-IA), at a total cost of about $16 billion. It was dropped from the stimulus amid GOP opposition, but Obama said today that he would “work with Congress to identify parts of the recovery act that could be trimmed to fund such a program and make it retroactive starting today.”

Could that strong presidential endorsement give the rebate plan the momentum it needs to win quick congressional approval? Stay tuned…

Late Update:
Sen. Charles Schumer (D-NY), who sponsored a $4,500 version of the “cash for clunkers” rebate alongside Sens. Dianne Feinstein (D-CA) and Olympia Snowe (R-ME), has just released a statement promising to work quickly on complying with the president’s request:

Even the most dramatic of restructurings will only help the auto companies if more Americans decide to buy cars. It makes sense for the government to help increase demand by providing an incentive for cash-strapped consumers to buy a new car. For Americans who have an inefficient clunker sitting in their driveway, our bill would provide a better trade-in offer than they could get from most car dealerships. Now that the President has endorsed this ‘Cash for Clunkers’ proposal, we hope to move it through Congress quickly.

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